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Gelneren [198K]
3 years ago
6

Joshua, Rachel, and Daniel formed an LLC to manage their accounting business. Joshua contributed $20,000 to the LLC. Rachel and

Daniel contributed $40,000 each. A year later, the LLC needed capital injection and Joshua lent a credit of $50,000. However, nothing could save the LLC and it entered bankruptcy and was dissolved. Joshua was the only creditor of the LLC. If a total of $50,000 was obtained after the sale of all the assets of the dissolved LLC, how much will Rachel get
Business
1 answer:
Alika [10]3 years ago
4 0

Answer: Rachael gets nothing.

Explanation:

According to the Revised Uniform Limited Liability Company Act (RULLCA), when all the assets of a limited liability company have been sold, the money gotten from the sale will have to be distributed first to the creditors of the limited liability company.

From the question, we are informed that Joshua gave the limited liability company $50,000 and we are further told that the sale of assets was $50,000 after the LLC was dissolved.

This means Joshua will get his $50,000 and there'll be nothing left which simply means that Rachael gets nothing.

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. Dallas Wildcat Drilling Co. sells an oil-drilling rig for $3,000,000. The drilling rig was purchased in 2013 for $2,000,000. D
olga2289 [7]

Answer:

$2,200,000 gain

Explanation:

When the amount received from the disposal of an asset is lower than the carrying or net book value (NBV) of the asset, the company makes a loss on disposal otherwise, the company makes a gain on disposal.

The carrying amount of the asset is the difference between the asset's cost and accumulated depreciation as at the date of disposal.

Asset NBV = $2,000,000 - $1,200,000

= $800,000

Gain/(loss) on disposal = $3,000,000 - $800,000

= $2,200,000

5 0
3 years ago
In accounting for a contingent liability, if the likelihood of the obligation is probable but the amount cannot be estimated, a
Tems11 [23]

Answer: d. provide disclosure in the footnotes to the financial statements.

Explanation:

A contingent liability is an obligation that a company might owe in future depending on the outcome of an event such as a law suit.

To record a contingent liability in the books, two conditions must be satisfied;

  1. Loss must be probable
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If these two conditions are not satisfied then the contingent liability may simply be disclosed as a footnote in the financial statement. The amount here is not estimable so can be disclosed as a footnote.

6 0
4 years ago
_____1. The price paid for the use of someone else’s property.
jonny [76]
The correct term to fill in the blank would be rent. The price paid for the use of someone else's property is called rent. It is a periodic and fixed amount of money paid by one that uses the possession of one.
7 0
4 years ago
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dalvyx [7]
Leveraged buyout/////////////////
4 0
3 years ago
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Fynjy0 [20]

Answer:

True .....this is because the entrepreneur is the risk bearer of the business...he is liable for any profit/loss.

8 0
3 years ago
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